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Original poster

Is this benefit fraud?

262 replies

Gingerangel · 06/12/2022 15:57

Just found out a friend of mine who is about to come into a large sum of money is intending to hide this money in a relatives bank account and not declare it to the DWP and have her relative just give her the cash as and when she asks for it. She’s doing this to hide it from the benefits people…

I was worried about her and told her that I think she might get into trouble doing this however she’s insisting on going ahead with this and thinks the DWP won’t notice anything is amiss. Is this benefit fraud? Can she get into trouble? And has anyone else done something like this and got away with it?

OP posts:

Nancienoo · 06/12/2022 16:45

wintertime9 · 06/12/2022 16:21

I'd report her

@wintertime9 or not and keep out of it

knittingaddict · 06/12/2022 16:46

QueenConsort · 06/12/2022 15:59

As long as it avoids her account completely be okay, ie she can't have it put in there and then move it out.

Fraud is fraud whether you get found out or not. The "contract" with benefits is that you declare a change in circumstances. If you don't it's fraud.

Notanotherone6 · 06/12/2022 16:48

Fraud, perhaps, but I don't blame her. I hate the fact that there's a savings limit for benefits. Why should someone living frugally get less than someone who spends every penny on shite?

Interested in this thread?

Then you might like threads about this subject:

Benefits

knittingaddict · 06/12/2022 16:49

The situation is identical to a relative of mine. They declared the money to DWP.

girlmom21 · 06/12/2022 16:50

Notanotherone6 · 06/12/2022 16:48

Fraud, perhaps, but I don't blame her. I hate the fact that there's a savings limit for benefits. Why should someone living frugally get less than someone who spends every penny on shite?

There's got to be limits though - like you shouldn't be allowed housing allowance if you've got enough in the bank to buy a property.

Chippy1234 · 06/12/2022 16:50

NOT - so if the money coming in was say £150k that would be OK with you?

Having said that have I missed what the amount was?

Sorry as well, I thought there was talk of inheiritance...

Ilikewinter · 06/12/2022 16:52

Her ex husband is selling a house they both own, and he is paying half the amount made from the sale into her brothers bank account. It’s a large sum of money
If its a house she owns then there will obvioulsy be a paper trail. Plus, im not sure that the solicitors are able to deposit her money into another bank account. Im sure I've read a thread on here where someone wanted money being paid to a relative and it couldnt be done, might have been something to do with money laundering??.

ScrambledEggsScrambledBrain · 06/12/2022 16:52

I would never do that she’s a struggling single parent, but I’m worried someone else she’s told might do… But would DWP actually be able to prosecute her for benefit fraud if there’s never been any money in her account? I mean if they investigate her account they won’t be able to see anything amiss right?

It's not just the benefit fraud she wants to worry about. It's that legally, that money does not belong to her, is her brother married, have children? As rare as it might be, if something happened to him such as divorce or death the money would be legally his assets and she'd have no access to it. What if her brother needs to claim benefits himself and then can't because his sisters money takes him over any threshold.

Would her brother and ex have to declare a large gift like that too?

It's a bad idea and not just because of the possible benefit fraud aspect. Is it not possible for her ex to put the money straight into something for their children and in their names instead? At least then it's secure for them.

taxpayer1 · 06/12/2022 16:52

Notanotherone6 · 06/12/2022 16:48

Fraud, perhaps, but I don't blame her. I hate the fact that there's a savings limit for benefits. Why should someone living frugally get less than someone who spends every penny on shite?

Maybe because if you have savings you don't need the taxpayer to pay for you? It is a safety net.

Coconut212 · 06/12/2022 16:53

It’s benefit fraud. What would happen is her brother passed away with her money in his account. If he’s married or has children the money would go to them

confusedlots · 06/12/2022 16:54

Will there be any tax to pay eg capital gains tax if it's not currently her main residence? Or is she living there with extra at the minute? There will be a trail through tax payments or through the solicitor arranging the sale, I imagine they're pretty quick to pick up on these things.

LadyOfTheFliessssss · 06/12/2022 16:54

Tillylime · 06/12/2022 16:41

But they’re allowed to have some savings.
What level is fair?
Someone with £20k, £50k,£200k?
Everyone would claim benefits wouldn’t they?

Show quote history

So how would you suggest anyone on benefits ever managed to save money to buy a house? They'll probably need a larger deposit and wouldn't be allowed it. It makes no sense to me to further impoverish people so that they can never stop being on benefits.

confusedlots · 06/12/2022 16:54

With ex, not with extra.

Notanotherone6 · 06/12/2022 16:55

girlmom21 · 06/12/2022 16:50

There's got to be limits though - like you shouldn't be allowed housing allowance if you've got enough in the bank to buy a property.

Show quote history

Perhaps, but £16k is way too low. It prevents people from being able to do things like save for a house deposit or buy a decent car.

BeggyMitchell · 06/12/2022 16:56

Couldn't she just open a new savings account for the money with a different bank?

But yes OP it is benefit fraud.

Floralnomad · 06/12/2022 16:56

Of course it’s fraud , it amazes me how many people treat benefit fraud differently to other types of dishonesty .

lookersnoopy · 06/12/2022 16:56

Perhaps, but £16k is way too low. It prevents people from being able to do things like save for a house deposit or buy a decent car.

If you are keeping your earnings low enough to claim UC the likelihood of you buying a house is slim!

LadyOfTheFliessssss · 06/12/2022 16:58

lookersnoopy · 06/12/2022 16:56

Perhaps, but £16k is way too low. It prevents people from being able to do things like save for a house deposit or buy a decent car.

If you are keeping your earnings low enough to claim UC the likelihood of you buying a house is slim!

So why make it even harder?

Notanotherone6 · 06/12/2022 16:58

taxpayer1 · 06/12/2022 16:52

Maybe because if you have savings you don't need the taxpayer to pay for you? It is a safety net.

Show quote history

Doesn't help them get out of the benefits system though, if every time you reach the threshold you're forced to live on your savings again. You can't have a safety net.

If you have the same circumstances as someone else, you should get the same amount, regardless of what you choose to do with the money.

PeanutsCrispsandVodka · 06/12/2022 16:58

I was sure benefits don't stop with all/any savings - they are minimised with savings? So for every £1000 in savings beyond the minimum amount your benefit amount goes down? Historically it was partly because of interest on savings providing an "income", obviously that hasn't been the case for a long time... but that is changing now.

Feelallright · 06/12/2022 16:59

BeggyMitchell · 06/12/2022 16:56

Couldn't she just open a new savings account for the money with a different bank?

But yes OP it is benefit fraud.

That won’t make any difference.
House sales are so legalised, it’d be quite easy to trace the origin of money.

Greblegable · 06/12/2022 17:00

This is a really stupid game to play. This isn’t like a scratch card where she can deny it was hers, it’s a house with a load of legal documents with her name on. She risks this coming out soon or even years later and being asked to pay back all the benefits she’s claimed plus a fine plus a criminal conviction. It’s a criminal offence and the brother risks criminal charges as well.

if it doesn’t get flagged through government system it could easily get flagged as money laundering when a huge chunk of unexplained money hits brothers account.

and to all the posters who claim shes morally ok , why the fuck should “the taxpayer” be paying her rent when she’s got maybe £200k in the bank??

oh and if it doesn’t get picked up immediately and she wants to buy a house with it later it’ll get flagged as potential money laundering.

you need to convince her not to do this.

lookersnoopy · 06/12/2022 17:00

So why make it even harder?

You misunderstand. Nobody is giving a mortgage to a single parent on UC. No matter how much they save up.

Q2C4 · 06/12/2022 17:00

Her relative's bank is likely to want to know where such a large amount came from. If the relatively can't explain this sufficiently he/she may end up having their accounts frozen or closed down (eg if fraud is suspected).

Underanothersky · 06/12/2022 17:00

I don't believe any of these threads. It's just a way to get the benifit bashers frothing

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